Weekly Mortgage Overview: 10/7/2013

Another week of government shutdown and we are just 10 days away from reaching our debt ceiling – that is what will be weighing on traders’ minds the most.

This week’s schedule is big on economic releases but the following reports will not be released if the government is closed:

-Consumer Credit
-Wholesale Trade
-Import and Export Prices
-Federal Budget
-Retail Sales
-PPI
-Business Inventories

There is a large supply of Treasuries to absorb:
10/08: 3-year Note
10/09: 10-year Note – Reissue
10/10: 30-year Bond – Reissue

The biggest event of the week was supposed to be the release of the FOMC’s minutes from their last meeting.  This will be released but traders were looking for insight from the minutes as to when the Fed might begin to taper.  But now the point is moot as the Fed is effectively forced to keep their bond purchases at current levels as an attempt to offset the damage to the economy that the government shutdown is causing.

Pre-Market Status: Neutral.  Once again, MBS are testing the upper end of the trading channel this morning and are most likely going to stay within the same trading channel as last week unless we get news that a deal has been struck and the shutdown will end.

What is on the agenda this week?